We're speaking with Ari Libarikian who is a senior partner with McKinsey& Company. We as consumers would own a very small percentage of our wardrobe; the majority of our clothing will be shared. So inclusion and diversity are crucial preconditions for all of this to happen. Imagine if we could then take those innovations and circular business models to scale. In surveys, about 80 percent of consumers tell us that they are shifting toward more casual wear, street wear, and loungewear; office wear is declining. McKinsey: That sounds like a difficult job—particularly because, in many parts of the world, H&M is still associated with fast fashion rather than sustainable fashion. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries, The future of fashion: Sustainable brands and ‘circular’ business models. Artificial intelligence (AI) and 3-D technologies are helping us take huge leaps in that area. Please use UP and DOWN arrow keys to review autocomplete results. Press enter to select and open the results on a new page. Future winners will be companies that can problem-solve for customers and create long-term relationships with customers—companies that provide solutions and services, not just products. A concept that I believe has amazing potential is embedding technology into the products themselves: How can we use on-product technology to enable a digital wardrobe? Consumers can see an old garment turned into a new one right before their eyes. Ari Libarikian: In this era, customers are expecting more and more technologically enabled services. The… Reinvent your business. Learn about Our flagship business publication has been defining and informing the senior-management agenda since 1964. The sharing and resale market will become an even bigger business than the retail market. Digital transformation as a Trojan horse. McKinsey is a thought leader when it comes to digital transformation. Michael Krigsman: What's the next step beyond digital transformation? Digital enablers will make it much simpler for garments to flow through circular business models such as resale, rental, and repair. We use cookies essential for this site to function well. Learn more about cookies, Opens in new I think the big winners in the future will be those fashion players that can embrace circularity and digitization at the same time. People create and sustain change. The European fashion industry registered the equivalent of six years’ growth in online shopping penetration from January 2020 to August 2020. We use cookies essential for this site to function well. Select topics and stay current with our latest insights. Most of the changes we’re seeing right now are major transformations; they are new lifestyle behaviors rather than just short-term trends in the market. Global Digital Transformation in Fashion Market Research Report 2020 carries in-depth case studies on the various countries which are involved in the Digital Transformation in Fashion market. Ari Libarikian: I'm good, Michael. Another bold prediction: through increased focus on environmental issues beyond climate change—biodiversity, for one—the fashion industry will become a force for change in other industries. tab, Engineering, Construction & Building Materials, Travel, Logistics & Transport Infrastructure, McKinsey Institute for Black Economic Mobility. Eine Zeit, in der sich Mode-Unternehmen nicht nur mit den Herausforderungen befassen, sondern sich auch mit … Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. The following are edited excerpts of the conversation. When it comes to circular products, there are a lot of super interesting things happening in material innovation. May 22, 2020With their customers increasingly online, fashion companies need to engage them with authentic messages over email, social media, and other digital channels—even while most people aren’t currently spending. our use of cookies, and How do you foresee consumer apparel-shopping preferences changing postpandemic and over the longer term, and what will that mean for circular business models? Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. People create and sustain change. We have had the power to create desire; I think we also have the power to create meaning and well-being. McKinsey Global Institute. McKinsey: Thanks for speaking with us today, Vanessa. Most transformations fail. Reinvent your business. Die techno­lo­gi­schen Fähig­keiten der Arbeiter in Deutschland sind im inter­na­tio­nalen Vergleich schon heute vergleichs­weise hoch: Deutschland liegt gegen­wärtig mit einem Anteil von 14% der Arbeits… Part of our role is to find the convergence between the digital shift and the circular shift—to make them come together so that it becomes very, very easy for the customer to adopt new ways of behaving and of using fashion. The “development” part means that my team works on raising awareness of circular business models and setting up the ambition so that we can drive those business models into the core of H&M Group’s business in a strategic and truly integrated way. Fashion’s next normal will be “ownershift” rather than “ownership.”. Today, we have the same kind of responsibility, and also the opportunity, to make “circular fashion” just as attractive or even more attractive. tab. How do you see the fashion retail landscape evolving between now and 2030, and what role will sustainability play in that landscape? In other words, the fashion industry will become a net-positive contributor to the environment and play a crucial role in the transformation of our society into a circular way of living. Digital upends old models. Damit eignet es sich hervorragend, um die digitale Transformation deines Unternehmens zu planen. Our flagship business publication has been defining and informing the senior-management agenda since 1964. McKinsey’s report for fashion retailers is a strong reminder to the retail industry that the challenges which they were confronted with during the peak of the Covid-19 pandemic were not a result of the pandemic, and as such, are not going away. Digital communication with customers is key to fashion companies’ survival COVID-19 Digital Retail May 22, 2020 With their customers increasingly online, fashion companies need to engage them with authentic messages over email, social media, and other digital channels—even while most people aren’t currently spending. McKinsey’s Apparel, Fashion & Luxury Group in Europe conducted a virtual roundtable discussion with European-based executives at leading digital fashion-related companies about their experience managing operations under lockdown. Customers will work together with companies to create both supply and demand, and there will be bigger multibrand platforms interacting with one another. McKinsey: Your job title is quite long. Please use UP and DOWN arrow keys to review autocomplete results. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. Over that period, the industry has grown at 5.5 percent annually, according to the McKinsey Global Fashion Index, to now be worth an estimated $2.4 trillion. Das Framework wurde 1999 in “The Alchemy of Growth” vorgestellt. Please try again later. Vanessa Rothschild is the global sustainability steering and development manager at H&M Group. For example, the fashion industry could champion regenerative farming and spearhead systemic changes within farming as a whole. By. In addition, consumers are making more conscious choices about what they wear, and that’s where we see them starting to embrace circular business models. Hey, Ari. For example, the fashion industry could champion regenerative farming and spearhead systemic changes within farming as a whole. The panelists included Maximilian Bittner, chief executive officer of Vestiaire Collective; Stefan Edl, head of Trans/formational Retail & Fashion DACH at Facebook; Boris Ewenstein, … collaboration with select social media and trusted analytics partners hereLearn more about cookies, Opens in new It might be possible to make new products without using any new natural resources at all. It is time for retailers to advance by using new digital tools and analytics software or … Digital upends old models. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Subscribed to {PRACTICE_NAME} email alerts. In our experience, successful digital and analytics transformations have the following elements in common: Strong support (or even direct sponsorship) from the CEO during the entire journey. 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